By Abigail W. Adams
Portland, Me., Nov. 16 – Everbridge Inc.’s newly inked deal expanded 3 points on a dollar-neutral basis on its market debut with trades of the 1.5% convertible due 2022 remaining steady in the 104 range throughout the session.
RH, formerly Restoration Hardware Holding Co., saw more than $84 million of its two outstanding 0% convertible notes due 2019 and 2020 in play during the session, as the company held its investors day.
In a reverse from yesterday, Quotient Technology’s 1.75% convertible due 2022 saw more trading activity than Rambus Inc.’s new 1.375% convertible due 2023. Both deals hit the secondary market on Tuesday with Rambus dominating trading during that previous session.
There was active trading in Insulet Corp.’s newly priced 1.375% convertible due 2024 and its outstanding 1.25% convertible due 2021, with the new issue trading just above par and the outstanding issue increasing 2 points to trade at 130.
Everbridge hits the market
Everbridge’s newly priced 1.5% convertible due 2022 expanded 3 points on a dollar-neutral basis in early morning trades, a market source said. The notes were trading 103.5 bid, 104.25 offer versus a stock price of $27.21.
The new offering continued to trade 4 points above par on an outright basis throughout the session as $34.2 million of the $100 million issuance changed hands, according to a market source.
The deal is a first-time issuance for the Burlington, Mass-based global software company specializing in applications for critical incidents. Pricing of the notes with a 1.5% yield and a 25% initial conversion premium came at the midpoint of talk.
Talk was for a coupon of 1.25% to 1.75% and an initial conversion premium of 22.5% to 27.5%, according to market sources. Capped call transactions raised the effective initial conversion premium from the issuer’s perspective to 75% and the price to $47.20, according to a company release.
Everbridge stock closed the day at $26.50, a decrease of 1.74%.
RH celebrates investors’ day
RH’s 0% convertible notes due 2019 and 2020 dominated trading activity during the session, as investors gathered in Florida for the company’s investors’ day.
The gathering came on the heels of an updated third quarter guidance with projections for increased net revenue, net income and diluted earnings per share, according to an SEC filing. RH also raised its fourth quarter future guidance on Wednesday.
RH’s 0% convertible due 2019 increased 9 points during trading to 105, a market source said. The 0% convertible due 2020 was trading at 104 in the late afternoon.
RH stock conversely broke its 52-week high, closing the day at $104.81, an increase of 25.82%.
Quotient eclipses Rambus
After dominating trading Wednesday, Rambus’ newly priced 1.375% convertible due 2023 tempered with only a handful of trades on Thursday, according to Trace data.
Activity remained steady around 101, with the final trade of the day at 100.887. Rambus stock made gains in line with the broader market, closing the day at $14.72, an increase of 1.59%.
Quotient’s newly priced 1.75% convertible due 2022 were actively traded during the session.
Quotient’s notes continued to hover around par, ending the day at 100.14, according to Trace data. Quotient stock made nominal gains, closing the day at $12.30, an increase of 0.41%.
Insulet active
Insulet’s newly priced and previously issued convertible notes were actively traded during the session. The company’s 1.375% convertible due 2024 changed hands several times with trades in the 100.39 to 100.8 range.
The 1.375% convertible note ended the day at 100.58, according to Trace data. The note was trading just under par Wednesday.
Insulet’s existing 1.25% convertible due 2021 received renewed attention with active trading throughout the day. The note climbed 2 points from its last recorded trade on Tuesday of 128 and closed the day at 130.25, according to Trace data.
Insulet stock also made gains, closing the day at $69, an increase of 1.68%.
Mentioned in this article:
Everbridge Inc. Nasdaq: EVBG
RH NYSE: RH
Rambus Inc. Nasdaq: RMBS
Quotient Technology NYSE: QUOT
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